Abstract

http://ssrn.com/abstract=1346038
 
 

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The Economics of Injunctive and Reverse Settlements


Keith N. Hylton


William Fairfield Warren Distinguished Professor, Boston University; Professor of Law, Boston University School of Law

Sungjoon Cho


Chicago Kent College of Law

September 1, 2009

Boston Univ. School of Law Working Paper No. 09-10
Chicago-Kent Intellectual Property, Science & Technology Research Paper No. 10-021

Abstract:     
This paper extends the economic literature on settlement, and draws some practical insights on reverse settlements. The key contributions to the economic literature on settlements follow from the distinction drawn between standard settlements, in which the status quo is preserved, and injunctive settlements, which prohibit the defendant’s activity. The analysis identifies the conditions under which injunctive settlements (rather than standard settlements) are likely to be observed and the conditions under which reverse settlements will be observed among the injunctive settlements. Specifically, reverse settlements are likely when the stakes associated with the injunction are large relative to damages and litigation costs. The analysis of settlement here has broader implications for efficient remedies and legal rules.

Number of Pages in PDF File: 23

Keywords: reverse settlements, injunctive settlements, economics of litigation and settlement, antidumping litigation, patent antitrust, patent infringement, nuisance settlements, private and social incentives to litigate

JEL Classification: K00, K21, K41

working papers series


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Date posted: February 19, 2009 ; Last revised: December 28, 2013

Suggested Citation

Hylton, Keith N. and Cho, Sungjoon, The Economics of Injunctive and Reverse Settlements (September 1, 2009). Boston Univ. School of Law Working Paper No. 09-10; Chicago-Kent Intellectual Property, Science & Technology Research Paper No. 10-021. Available at SSRN: http://ssrn.com/abstract=1346038 or http://dx.doi.org/10.2139/ssrn.1346038

Contact Information

Keith N. Hylton (Contact Author)
William Fairfield Warren Distinguished Professor, Boston University ( email )
595 Commonwealth Avenue
Boston, MA 02215
United States
617-353-8959 (Phone)
Professor of Law, Boston University School of Law ( email )
765 Commonwealth Avenue
Boston, MA 02215
United States
617-353-8959 (Phone)
617-353-3077 (Fax)
Sungjoon Cho
Chicago Kent College of Law ( email )
565 W. Adams St.
Chicago, IL 60661-3691
United States

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